Priya Blue Industries Private Limited Vs ACIT (Supreme Court of India)
SC Upholds Gujarat HC Ruling Allowing Section 148 Reopening on Fresh Investigation Material; SC Declines Interference in Case Involving Alleged Bogus Sales and Accommodation Entries; SC Lets Reassessment Proceed Because Fresh Material Suggested Non-Genuine Transactions; SC Affirms That Prima Facie Material Is Enough for Income Tax Reopening Proceedings.
The matter concerned reopening of assessment proceedings under Sections 147 and 148 of the Income Tax Act for Assessment Year 2012-13 against a company engaged in ship-breaking business. The assessee challenged the notice dated 30.03.2019 issued under Section 148 before the Gujarat High Court. The Supreme Court subsequently dismissed the Special Leave Petition filed against the Gujarat High Court judgment.
Read HC Judgment: Gujarat HC Upholds Reopening of Assessment Based on Alleged Accommodation Entries
The assessee had originally undergone scrutiny assessment under Section 143(3). During the relevant financial year, it had disclosed total sales of Rs.26,266.19 lakh, including sales made to M/s. Harsh Enterprise. According to the assessee, all sales proceeds were received during the year and reflected in audited annual accounts. The Assessing Officer had also called for TCS-related details during original assessment proceedings, and the assessee furnished E-TCS returns and transaction registers containing details of sales to M/s. Harsh Enterprise. The original assessment order dated 05.03.2015 did not disturb the declared sales.
